Call or Text 757-418-6390

Is the Virginia Beach Real Estate Market in for a big shift?

Everyone knows it is a sellers’ market and has been for quite some
time, the Virginia Beach Real estate market is no different. As the
PCS season is in full swing many homes are hitting the market, but
also there is an influx of new buyers for those homes. This is a prime
opportunity for a seller, right? Well in short, yes currently there are
more buyers then homes available in Virginia Beach.
As of the writing we are at a pinnacle point, the current median
market price in Virginia Beach is $276,000.00 and the average time on
the market is 18 days. That is staggering, especially when you
consider what the market looked like just six short months ago. Let us
go back to the good old days of January 2019, the median price for a
single family home in Virginia Beach was a mere $250K and the average time
on the market was 44 days, just over a month and a half. What a
difference 6 months will make. It is a great time to be a seller,
right?

Maybe, maybe not, it is true that the Virginia Beach Real Estate Market is
currently a seller’s paradise. However all good things must come to an
end and all cycles repeat at some point so let’s take a deeper look at
the numbers and try to see what they mean. Let’s look at the median
sales price of a single family home in Virginia Beach, as I said
earlier we currently sit at $276K, this is the highest it’s been since
January 2009 when it was just $225K. In fact, the closest it has been in
recent history was in June of 2010 when the median home price in
Virginia Beach rose to just over $262K. Now let us look at time
on the market using the same times. Again today, we are at 18
days houses are selling and they are selling fast. It is the same story here,
though this is the lowest average market time we have seen in Virginia
Beach in recent history. In January 2009, the average time on the
market was 63 days, over two months. Fast forward to June of 2010 and
the Average Market Time dropped to 44 days.

Grpah showing Virginia Beach Real Estate Market Median Sales Price
Grpah showing Virginia Beach Real Estate Market Median Market time

What does July 2019 have in common with June of 2010, in Virginia
Beach? Well for one thing, home prices are up and average market time
is down. In fact, they were at the highest they had been in a long
time, and then much like now it was a sellers’ market. Now let us look at
January through March of 2011 and see what the market looked like
then. In January of 2011, the median sales price of a single family
home in Virginia Beach was just $202K, down 23% in just 6 months. The
average time on the market in March of 2011 was a stunning 77 days, a
rise of 42% again quite the change.
However, what does it all mean for the Virginia Beach Real Estate Market?
Can it possibly continue to get better? Will sellers continue to see
maximized profits with minimal effort? Will houses continue to sell at
a premium in record time? It is hard to say for sure, but if you look
at the two graphs above you will notice one truth that cannot be
ignored. For all the peaks over the last 10 years, it has been followed
by a steep and almost immediate valley. What is even more troubling is
how drastically higher we are right now vs 10 years ago in price and
how much lower we are in average time on the market.
Looking at the last 10 years of the Virginia Beach real Estate Market
as a whole you will notice a steady increase in price and a relatively
steady decrease in market time. Another item to look at is mortgage
rates; the average rate in 2009 was 5.03%, down to 4.69% in 2010, and
3.65% by 2012. The average rate for March of 2019 was 4.28%, and in June, we were down to 4.25%, not a dramatic shift but they are starting
to come down slowly as well. Home prices and mortgage rates dropping
are usually indicative of one thing… the transition to a buyers’
market!

Is the Virginia Beach Real Estate Market turning its back on the
seller and transitioning to a buyers’ market? Trulia seems to think
so, in their article
(https://www.trulia.com/research/buyer-seller-shift/) they suggest
that in 50 different metro areas they are seeing a shift. With the numbers we are seeing in Virginia Beach, it won’t be long before the
buyers gain the upper hand. My guess is within six months we will see
the shift in full force and it will be a good time to be a buyer.
What are buyers in for in the coming months? What advantages do they
have? First time homebuyers will have some more time to shop around
as the average market time rises. Avoiding the frustration of finding
the home of their dreams and are unable to purchase it, because it went under contract just a few hours ago.

Those looking to upsize will also gain a slight advantage, the home
they are selling will drop in value a bit, but also will the one they
are looking to buy, and they should be able to do so at a discounted
interest rate. In addition, of course the well-informed investor stands to make a
little bit of extra money in the upcoming shift, as if they sell now
they should be able to sell high and in a few short months buy low.
Some disadvantages to buyers however will be stricter loan
requirements, and a shortage in inventory as sellers try and hold out
for the uptick in the market or can’t afford to sell any longer due to
lack of equity.

The Virginia Beach Real Estate market is in for a transition in the
coming months as buyers begin to gain the upper hand and sellers will
be forced to lower prices, or get creative to market their homes. The
market is a cycle, so it will be there repeatedly. If you are in the market to buy, start getting ready! Realtors nationwide
are readying themselves for the shift and so should you. If you are in
the Virginia Beach Market, weather your looking to buy or sell, and
would like some assistance or more information please do not hesitate
to ask!

Leave a Reply

Close Menu